Mortgage lending hits new peak

HOME loans surged by a record amount in January, industry figures revealed today, in a reflection of the renewed strength of the housing market at the start of the year.

The British Bankers' Association said net mortgage lending rose by £4.1bn to £385bn - the biggest ever one-month increase and up on December's £3.7bn.

Consumer credit, which includes credit card borrowing, loans and overdrafts, fell back slightly. It grew by £900m against a record £1bn in December, mainly as a result of consumers paying off Christmas credit card bills.

BBA chief executive Ian Mullen said: 'There was firm demand for re-mortgaging and equity release products, and credit card repayments were strong. This reflects more financially-aware customers, shopping for financial products and understanding them more clearly.'

In recognition that Britons are saddling themselves with more debt than ever, the banking industry is setting up a national debt line scheme, offering free independent advice.